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Kimco Completes Sale & Ground Leasing of Land at Dania Pointe

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Recently, Kimco Realty Corp. (KIM - Free Report) completed the sale of nearly nine acres of land to Spirit Airlines, Inc. (SAVE - Free Report) at the 102-acre Dania Pointe development in Dania Beach, FL. This land will be used by the Miramar-based airlines to develop new global headquarters, as announced in October 2019.

The creation of the 500,000-square-foot corporate campus will require funding of up to $250 million. With the construction likely to begin in 2021, the transfer of employees is anticipated to be in the middle of 2022.

Also, Kimco has entered into a ground lease agreement for an additional land parcel with Spirit Airlines, which will be utilized for the construction of a corporate training residence.

According to Kimco’s management, Dania Pointe’s location (near Fort Lauderdale-Hollywood International Airport) and the project’s first-class amenities make it a strategic fit for the new headquarters. Also, the move strengthens the development’s position in the Greater Fort Lauderdale area as the prime location, where people prefer to live, work and play.

Remarkably, Dania Pointe’s dominant, high-visibility location features two exits and 1,600 feet of frontage along I-95, with traffic count reaching nearly 300,000 cars a day. The development area, located near the port and the airport, serves many tourists, thus, boosting footfall. The tenants of Phases II and III of the project started opening in the fourth quarter of 2019 and will continue through 2020.

Apart from the airline company’s new headquarters, Phases II and III, which are nearly 69% pre-leased, will include another 417,000-square-foot space for mixed-use retail, dining and entertainment options. Kimco has ground leased space for two Marriott hotels and 850 residential apartment units, of which the first 264 are currently under construction. Further, it has signed leases with lifestyle brands like Urban Outfitters, Inc. (URBN - Free Report) and Anthropologie, which are slated to open doors at Dania Pointe later this year.

Earlier in November 2018, Kimco opened Phase I of the development. Currently, its tenant coaster includes brands like Starbucks Corporation (SBUX - Free Report) , Hobby Lobby, Ulta Beauty, BrandsMart and Five Below. Notably, Phase I is 96% leased.

We believe Kimco remains well poised to navigate through the retail apocalypse, with focus on service and experiential tenants, and omni-channel players. The company is aiming to expand its small shops’ portfolio. Amid limited new supply and favorable demographics, this diversification is likely to help Kimco limit its operating and leasing risks.

Shares of this Zacks Rank #3 (Hold) company have jumped 30.8% over the past year, outperforming its industry’s growth of 12.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.



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